Define the term amortized but write down its meaning in your own words in reference to amortized mortgages.

Q: Explain Second Mortgages and Shorter Maturities?

A: It is a type of mortgage loan which is similar to a mortgage loan which is tenable by a borrower's…

Q: understand how the secondary mortgage market functions, remember that the primary function of this…

A: Secondary mortgage market is the market where banks repackage and sell mortgages as securities to…

Q: What is the difference between an investment - grade bond and a junk bond?  2 .  What are the…

A: The primary difference between an investment grade bond and a junk bond lies in the credit quality…

Q: Explain Mortgage passthrough securities (MPTs)?

A: Answer: One form of mortgage backed securities is a pass through security. Mortgage securities allow…

Q: Describe some of the motives and mistakes made by the mortgage brokers?

A: To market and attract new borrowers for the lenders Assessment of credit history of the borrowers.…

Q: balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?

A: Step 1 A balloon payment is a one-time payment that is bigger than usual at the expiration of the…

Q: What is the primary distinction between mortgage-related securities backed by residential mortgages…

A: Commercial mortgage backed securities (CMBS): These are fixed-income securities that are backed by…

Q: in layman's terms, what is the diff. between a mortgage backed security and a credit default swap?

A: The borrowings made for purchasing fixed-assets like land, property, home and apartments is…

Q: Mortgage Banks have different cost structures depending on how they originate or acquire mortgage.…

A: Mortgage banks are those banks which are specialised in mortgaging loans. Such banks are involved…

Q: Explain Determinants of Mortgage Interest Rates?

A: Following are the determinants of Mortgage Interest Rates: Credit score: Banks and HFCs see the…

Q: he sale of a mortgage portfolio by setting up mortgage pass-through securities is an example of A)…

A: A pass-through security is where mortgage holder create a security from pool of mortgages and sell…

Q: Explain the list contains a description of some of the more important terms used when dealing with…

A: Margin:  Margin is considered as certain percentage points that lenders added to the index rate in…

Q: interest rate risk differs between mortgage companies and other financial institutions

A: The mortgage company is a financial firm that gives out its own loans. They use their own funds or…

Q: S Throughout the process of originating and selling mortgages, mortgage companies face a number of…

A: Down payment is the percentage of the loan that is not paid off at the time of applying for a…

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: Explain the influence of the pricing of a mortgage pass-through security?

A: The bond prices of a mortgage pass through security are influenced by: Change in interest rate:…

Q: Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys…

A: YES, mortgage can be insured. Mortgage insurance is an insurance policy that protects a mortgage…

Q: Explain why it's possible for tranching to make invest ing in a mortgage -backed security more risky…

A: A mortgage-backed security is a type of security which is backed up by mortgage meaning failing to…

Q: define the parameters included in the interest rate of a mortgage. In addition, explain which of the…

A: Parameters included in the interest rate of a mortgage. Parameters included in the interest rate of…

Q: What is a mortgage-backed security (MBS)? Why is it difficult for ratings agencies to determine the…

A: Introduction: Mortgage is nothing but an instrument of debt that the creditor is obliged to pay off…

Q: Explain the Factors Important in Mortgage Loan Pricing?

A: Mortgage loan pricing: The process of analysis and arriving at the exact interest rate for a…

Q: Explain Negative Amortizing, Constant Payment Mortgage (CPM) Loans?

A: Negative amortizing: Negative amortization is a financial concept that refers to a rise in a…

Q: Explain the difference between conventional mortgages, reverse mortgages, and second mortgages.

A: Difference between Conventional mortgage ,reverse mortgage , second mortgage Mortgage Mortgage is a…

Q: Explain constant amortizing mortgage (CAM)?

A: It is otherwise called an amortizing mortgage, is one where the principal and monthly interest…

Q: Give an example of a real estate mortgage and chattel mortgage. What are the obligations being…

A: The term mortgage refers to the loan taken by an individual for which the individual has put some…

Q: With a Fixed-Rate Mortgage, the ate risk. bears the interest bears the interest rate risk and with…

A: A mortgage is a type of loan that requires security. The mortgage can classify based on the interest…

Q: When one examines a REIT investment, why it is important to consider the terms of the company’s…

A: REIT stands for Real Estate Investment Trust. It manages and operates properties that generate gain…

Q: Explain the term Fixed Interest Rate Mortgage (FRM) Loan?

A: Mortgage loans:   The mortgage is a type of loan in which a property or any other real estate is…

Q: Explain Restructuring the Mortgage Loan?

A: The mortgage loan restructuring option is generally considered by homeowners so that the loan…

Q: Explain the Federal National Mortgage Association (FNMA)?

A: The Federal National Mortgage Association (Fannie Mae) is a federal corporation that guarantees…

Q: Why do adjustable-rate mortgages (ARMs) seem to be a more suitable alternative for mortgage lending…

A: Price level adjustable mortgage (PLAM): Price level adjustable are mortgage loans where the…

Q: Explain why adjustable rate mortgages (ARMs) are considered to be a more suitable alternative for…

A: Adjustable rate mortgages : Also referred to as variable rate or floating rate mortgages, an…

Q: Explain GPM Mortgage Loans and Effective Borrowing Costs

A: Graduated-payment contract (GPM) loans: It may be a sort of fixed-rate mortgage in which…

Q: What are the main types of mortgages issued by financial institutions ?

A: Mortgage means taking title of the borrowers property in exchange of lending money which is repaid…

Q: What are the three 'C's' of mortgage underwriting?  What is one way in which each of the 'C's' is…

A: When you buy house than you need loan for home but there is need of down payment also and remaining…

Q: How commercial loans and mortgages are structured in terms ofinterest and principal payments.

A: Commercial loan, as well as a mortgage, are being structured in terms of interest and principal…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: Explain The Federal Home Loan Mortgage Corporation?

A: Federal Home Loan Mortgage Corporation is a private corporation which is established with the…

Q: Explain Fully Amortizing, Constant Payment Mortgage (CPM) Loans?

A: Answer: Fully amortizing: A fully amortizing payment applies to a form of annual debt repayment.…

Q: Explain Inflation, Mortgage Pricing, and Payment Structuring

A: Inflation:  Increase in price of the good is called inflation. When inflation increases, the…

Q: What is the secondary mortgage market? List three reasons why it is important?

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: Explain Mortgage pass-through securities (MPTs)?

A: Mortgage pass through securities are also known as pass through securities are mortgage backed…